The Cash for Clunkers program doesn’t just deal with automobiles. President Obama wants to see a greener, more energy-efficient America, and you and I want to see more money in our pockets for the things that matter. Sure, a personal loan can pick up the slack on occasion, but reducing our consumption is a long-term solution.

That’s why energysavers.gov is doing everything it can to clue consumers into the appliance Cash for Clunkers aspect of Obama’s plan. Cash for appliances that spin the dials on your electric meter faster than they should is a great excuse to get new ones that are energy-efficient. And as you know, spending stimulates the economy, so it’s a win-win.

It’s a $300 million program – put it to the test!

Save money and energy. That’s what Beth Pinsker Gladstone of WalletPop.com tells the Seattle Times. Potential rebates range from $50 to $250 per qualifying appliance, so it is definitely worth your time. Dates for Cash for Appliances vary by state, and a wider variety of appliances will be accepted as the appliance Cash for Clunkers project continues. Much like the auto Cash for Clunkers, the program will continue until the money is exhausted – on Congress votes to funnel more into it. Check out energysavers.gov for additional information.

Go green and recycle

Think of the whole green equation this way: green appliances will save you money, but it will also help everyone else around you paying for electrical power. Gladstone suggests that if you’d like to learn more about green products, this is another useful resource, aside from what you can find at energysavers.gov. Keep in mind that part of being green is recycling, so those who aren’t sure how to proceed with recycling their old appliances should visit energystar.gov for more info. Even if you need to rent a truck with a personal loan, the savings you’ll reap and the good you’ll do the environment is worth it all.

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Image from Flickr.

The government this week announced it is planing a new program called Cash for Caulkers. The program has great intentions: conserving energy and saving homeowners money. The idea is that the government will reimburse homeowners to the tune of 50 percent of the cost of any projects that conserve energy around the home.

Like I said, it has good intentions. I have a few reservations about this program, however, and the biggest one is its name. I’m not going to try to mask or hide my loyalties here: I am an Obama supporter all the way. However, that doesn’t mean I blindly agree with every White House decision, and this is an example of a shaky one. Don’t count on paying for home improvements with a short term personal loan and getting the government’s reimbursement in time to pay it back.

Invoking a laughingstock

Cash for Clunkers was an not a great program. Argue all you want, but it operated way behind schedule and ran out of money way ahead of schedule. Furthermore, it was the punchline to many jokes, angered a lot of people because they didn’t get the rebates they were expecting when the expected them and it got axed long before the deadline.

So, first and foremost, I think giving this program the name Cash for Caulkers is a bad idea because it strongly suggests that the same fate will befall this program. Furthermore, some of the holes in Cash for Caulkers regulation indicate it’s pretty likely.

Details on Cash for Caulkers

So far, there is no income limit for who can take advantage of Cash for Caulkers, only a $12,000 limit on reimbursement. So people can do up to $24,000 worth of projects that make their homes more energy efficient and be reimbursed for up to half of it.

Of course, the bill isn’t finished and there will likely be a lot of changes made before it’s finalized, but that’s the gist of it.

Too much too soon

The first thing that needs to be changed is the name. I probably wouldn’t have instantly reacted so negatively to this idea if it had a different name. Furthermore, I think only people who can’t afford to pay for the alterations themselves should be eligible in order to make the budget go farther.

Energy efficient homes can save their owners up to 20 percent per year on their power bills. People who can afford to get more energy efficient appliances and weatherize their houses have plenty of motivation to do it without government incentives.

Also, independent contractors will have to determine whether a project increases a home’s energy efficiency. There are a lot of ways people could defraud the government. I hate to say it, but I think Cash for Caulkers has a good chance of being more trouble, and money, than it’s worth. After all the money that has been pumped into the economy with little to show for it, it might be a good idea to wait until the White House has some positive results to show for its efforts before starting this program.

Toys R Us is getting in on the clunker craze

If you’ve been wishing you could get a better crib, car seat, or stroller than the one you have now — without having to first go online and type “no fax payday loans no credit check” into your Google search bar — now is your chance to upgrade while saving a little payday cash. From August 28 through September 20, all Babies R Us and Toys R Us stores across the nation will be offering discounts on replacement products to shoppers who trade in used cribs and other baby gear.

Unlike the popular Cash for Clunkers Program (the Car Allowance Rebate System Act, or CARS) and the much-anticipated federal rebates program for appliances, the baby-gear promotion has nothing to do with the economic-stimulus bill. Cash for Clunker Cribs coasts conveniently on the tailwind of the federal rebate programs, but it’s a private promotion offered by Toys R Us Inc. Shoppers who trade in used cribs, car seats, bassinets, strollers, travel systems, play stations, or high chairs will receive 20% off the purchase price of new replacement items from selected manufacturers.

“Safety” comes first, but “used” is the operative term

The company is positioning the sale as a push for children’s safety, but your trade-in doesn’t have to be unsafe or recalled by the manufacturer to entitle you to the discount. Trade-in products only have to be “used” to qualify, but “safety” is the company’s catchword. In a recent CNN interview, chief executive Jerry Storch sounded like a candidate for a no-fax payday loan when he said, “We are all looking for ways to stretch our dollars, but in doing so, children’s safety should not be compromised,” adding that it is important to be “vigilant about potentially unsafe children’s items that may still be in the marketplace.”

More than 100 unsafe products so far this year

Now is a great time to upgrade the cat's cradle, too

According to Kids in Danger, a nonprofit organization dedicated to protecting children by improving children’s product safety, 103 baby products including cribs, strollers and toys have been recalled so far this year. In the CNN article, Nancy Cowles, spokeswoman for the advocacy group says, “The [Toys R Us] trade-in is a good effort among many that are needed [to improve safety], and retailers can be an important player, but it would be easier to get safe products on the market in the first place.”

Cowles also said that many recalled baby products actually do meet safety standards, which indicates that stricter guidelines are needed for the industry. A safety improvement act was passed in 2008 by the Consumer Product Safety Commission will be phased in over the next few years, helping to make children’s products safer, Cowles said.

Sometimes “used” is a hidden danger

A spokesperson for the giant toy retailer told CNN that “certain baby items should not be reused or resold.” Only 30% of recalled baby products are ever actually returned, “which means that many dangerous items remain in circulation.” Don’t be fooled by used baby products that look okay, because sometimes the danger is not obvious. For instance, “the materials that car seats are made of can break down over time, making the product less effective in a crash.” Think about that when you’re tempted to keep all your extra cash to yourself by picking up a car seat at the neighbor’s yard sale.

Take recalled items back to the store where you bought them

Safety is a noble goal, indeed, but so is getting by until payday without an installment loan. If you have a baby product that’s been recalled, try returning it to the retailer where you purchased it before you head out to the Toys R Us sale. Normally the retailer who sold the recalled product will provide a full refund or store credit. For a list of recalled baby products, check out About.com.

And for a No Fax Payday Loan No Credit Check, APPLY HERE

If you are going to trade a vehicle in under the Cash For Clunkers program you might as well apply for a short-term loan online to put some money in your pocket to help with the down payment. Everyone knows that you can get a better interest rate and repayment terms when you have more cash to put down on your down payment. Keep reading to find out what installment  loans for bad credit can do for you.

Direct Deposit In As Little As 2 Hours

When you have extra money for a down payment for your vehicle it makes the whole car buying process much easier. The more cash you put down the lower your monthly payments in most cases. Who doesn’t want a lower monthly payment on the new car they are buying. It is to your advantage to get up to $1,500 direct deposited to your account in as little as two hours.

Online Short Term Loan Options to Help With Down Payment

You have a couple options for obtaining this quick cash before you trade your vehicle in for the cars.gov Cash For Clunkers program. You can apply right on this site for the following types of online loans:

• Click To Read About Cash Advances
• Click To Read About Payday Loans
• Click To Read About Installment Loans
• Click To Read About Short Term Loans
• Click To Read About Personal Loans

Cash Advances Online

Cash advances are typically obtained through employers, banks, and other financial institutions. Many refer to cash advances online as direct deposit loans and payday loans. Speed and convenience are the benefits of applying for a cash advance online. Usually cash advances are not available for loan amounts over $1,500.

Payday Loans Online

Payday loans are many times obtained in walk in stores in the borrowers local area. Most users of payday loans don’t even know they can get them online. The advantages of a payday loan online is there are typically no faxing of identification documents required. You don’t have to show pay stubs or proof of address on utility bills etc. Like cash advances these loans are typically $1,500 or less.

Installment Loans Online

Installment loans are an alternative to the typical payday loan and cash advance type of loans. Most borrowers of installment loans know they can get them online and are usually more picky about where they borrow from. The advantages of installment loans consist of generous repayment plans. Unlike payday loans and cash advances, installment loans online provide a much longer payment period. Some installment loans can range from $300 up to $2,500.

Short Term Loans Online

Short term loans are very similar to installment loans and have longer payment plans. Many borrowers of short term loans don’t mind credit checks and prefer for their loans to count on their credit reports. Building credit with short term loans online is available with some lenders. Typically applying online does not require a credit check. Like installment loans and personal loans some short term lenders will lend over $1,500 depending on the qualifications of the applicant.

Personal Loans Online

Personal loans are usually unsecured but there are some types that are secured and do require collateral. Like short term loans some unsecured personal loans require credit checks but that is not typical for the online variety. The advantage of personal loans online is the amount you can borrow. Many personal loans range from $100 all the way up to $10,000.

Start Your Application For Up To $1,500 Below

Beginning late this fall, federal rebates will be available for purchasers of high-efficiency household appliances, furnaces, and air-conditioning systems. Earlier this year Congress authorized $300 million for the program as part of the federal economic-stimulus bill. Funds were distributed to states based on numbers of households, but the federal government left the details of the programs up to each state. The states have until Oct. 15 to submit plans for their rebate programs to the Department of Energy.

But even after rebates, home appliances don’t come cheap. A new Energy Star® KitchenAid® 24.9 cu. ft. refrigerator, for instance, retails for about $2500, plus tax and delivery charges. So if you’re planning to purchase appliances, start saving your cash now, or fill out our easy online application to get a personal loan.

What are the rebates supposed to do, again?

The appliance rebate program is similar to the popular “cash for clunkers” program (the Car Allowance Rebate System Act, or CARS), but doesn’t require a trade-in or exchange. The stated goal is to stimulate consumer spending and smarten up energy use. With the CARS program winding down, appliance manufacturers and retailers are hoping the new rebate program will revive slumping sales of refrigerators, washing machines, and dishwashers.

It will be several months before we know what effect the CARS program had on the GDP, but we do know that it created a brief spike in car sales and a slight tailwind for the US economy. It wasn’t enough, however, to keep car sales in the black. After making gains in May and June, car sales fell again in July.

Some say appliance rebates are great

Some say that the American people have become frugal consumers and that the economy would benefit from another spending incentive. Retailers and manufacturers in particular endorse the appliance rebate program.  J.B. Hoyt, director of governmental relations for Whirlpool Corp., recently told The Wall Street Journal that government rebates would be “a good way for the consumer to get back into the marketplace,” adding that “clearly, anything that boosts business is good for us.” Whirlpool was pushing for a rebate program long before the economic-stimulus bill was born.

Appliance manufacturers aren’t the only ones who like the government rebate program. According to someone on bloggingstocks.com, you can like the program even if you’re not a New Deal economist:

Yes, it’s government intervention in the U.S. economy. Yes, it’s a form of socialism: so are billion-dollar subsidies to American farmers. But it will further boost the U.S. economy. And you don’t have to be an economist in FDR’s New Deal administration to know that.

Some say appliance rebates are crazy

Others see the appliance rebate program as just another way to rack up more public debt, without a hope of ever repaying it — a shameful legacy earmarked for future generations. Someone on newsobserver.com had this to say:

Americans are about to be handed more of their great grandchildren’s money so they [can] shop for products for the kitchen and laundry room. Look, if we had even a whimper of a surplus — or even had a dream of one day dropping our deficit I could at least live with this. But we’re bankrupt and just piling on more debt as if money is going out of style.

Given its patent lack of environmental benefits, the CARS program was so popular that green cynics are now proposing things like “Cash for Clunker Homes,” “Cash for Clunker Computers,” “Cash for Clunker TVs,” and “Cash for Clunker Vacations.”

And some say appliance recycling programs are the way to go

In the final analysis no appliance is green

Some states, like New Jersy and Vermont, offer residents small recycling rebates and free pick-up for old appliances. In Michigan, as part of a plan to meet a state-mandated goal of reducing energy consumption, DTE Energy, the state’s largest power company will pay $50 for an old refrigerator or freezer and haul it away for free. The old appliances are recycled for parts used in making computers, cell phones, and steel rebar.

In a Wordpress blog called Cash for Clunker Appliances, Ann Porter explains that appliance recycling programs remove carbon dioxide from the atmosphere much more inexpensively than the CARS program did.  The math may be questionable, but the underlying point may have some validity:

An Appliance recycling plan is far superior to the hijacked CARS program because the car rebates, which run as high as $4,500 per purchase, ultimately cost taxpayers around $160 per ton of carbon dioxide removed from the atmosphere. An appliance recycling rebate between $25 and $50 removes about five tons of carbon dioxide from the atmosphere. According to Elana Schor, that works out to a cost of $10 per ton for the richest refrigerator rebate program — more than 10 times cheaper than “cash for clunkers.”

(Photo: bharrison.wordpress.com)

The vision of President Obama is that programs like Cash For Clunkers will eliminate all of the gas guzzling monstrosities of rusted metal that populate America’s highways, replacing them with pristine machines with glistening MPG ratings and minimal impact upon the environment. The reality of the situation is that some people can afford the luxury of brand new, fuel-efficient vehicles, but most cannot, even with a $4,500 boost from Cash For Clunkers. In order to make a down payment, or even monthly payments, payday loans and cash advances come into play.

But that won’t stop the automakers

According to ZDNet, Chevrolet is going pedal to the metal down the path toward the perfect electric car with the new Chevy Volt. Despite the limitations that still exist in the battery technology for electric vehicles, Chevrolet still feels that Chevy Volt is going to catch the eye – and the wallets – of the American driving public.

Right up front, the most obvious selling point for the Chevy Volt in this Cash For Clunkers, go green for the Obamavironment  universe is that this electric vehicle will get up to 230 miles per gallon in city driving. How’s that for a mouth-watering number? In terms of electricity costs per 100 miles, it’s only $2.75 by Chevrolet’s estimate. But if you aren’t near a place where it’s convenient to plug in, you’re in for some trouble. You might find that you need a tow for that high tech dead battery chariot, and if you don’t have a tow package or cash on hand, you might consider payday loans or cash advances. You could even apply for them here.

Ready for 2011

Based on the prospect of being free of the gasoline pump and its skyrocketing costs will be a big draw for many consumers. However, people will have to wait before they can get their hands on this vehicle. The Chevy Volt won’t go in to production until late 2010. It will be available as a 2011 model.

Before you sign up to buy a 2011 Chevy Volt, here are a few things you should definitely know:

1. With a single electric charge, the battery of your Chevy Volt can carry you 40 miles under optimal conditions. Thus, this vehicle is an electric/fuel hybrid.
2. Once the standard combustion engine is taken into account, the overall range of the Chevy Volt will be around 300 miles. Plan your trips accordingly and find an electrical outlet you can use.
3. GM recommends that the Chevy Volt be plugged in for recharging at least once per day, but users may need more depending upon usage.
4. Just how much mileage you get on a charged battery will depend upon a number of factors, including how much cargo you’re carrying, whether or not you’re using the air conditioning and just how many passengers you’re dragging along. But don’t literally drag them, please.

Um, I can’t use the AC?

Of course you can use the air conditioning. President Obama’s drive to improve the environment hasn’t cracked down on automobile air conditioning and their evil freon yet. Give it time. But until then, you can use the air conditioner in your Chevy Volt. Just keep in mind that it may decrease the miles you get out of a charge significantly. ZDNet notes that once the Volt’s battery dials down to minimum charge, extended-range mode will automatically kick in. Thus, you won’t stall out while merging onto the freeway. The Chevy Volt will begin to utilize it’s combustion engine to produce electricity that will continue to operate the car. That is cool, but remember to recharge the battery as soon as you’re done with your trip.

Ready for a real jolt?

We’ve talked about the range of the Chevy Volt, which will be a problem for some people. But the real kicker with the Chevy Volt will be the price tag. Most consumers simply won’t be able to afford it at $40,000. I know I won’t, and I believe that will be the case for most consumers who are looking for inventive news ways to stretch their dollar. Monthly car payments on a Chevy Volt aren’t taken into account by any government or dealer discount plan. You simply have to buckle up and try to make it.

At the very least, payday loans and cash advances are good for a down payment…

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According to a list compiled by the National Transportation Safety Administration, compact cars and hybrids are top sellers in the Cash for Clunkers trade-in program. The average combined city and highway fuel economy of the top ten cars ranges from 27 to 33 miles per gallon, depending on which versions people purchased.  With gas mileage like that, you just might make it to payday without a cash advance or paycheck loan!

The four top-selling cars were the Ford Focus (27-28 combined hwy/city mileage) followed by Toyota Corolla (25-30) the Honda Civic (24-42) and Toyota Prius (46). The list includes four vehicles available as hybrids, in order of preference: Honda Civic (24-42) Toyota Prius (46) Toyota Camry (23-34) and Ford Escape (20-32).

But not everyone agrees

Not everyone agrees with how the government devised its Clunkers’ rankings. Edmunds.com recently released its own sales rankings listing the Focus at No. 2, the Civic at No. 6 and the Corolla at No. 9. Pick-up trucks took up several top spots.

Release of the top sellers report came just as the debate was heating up in the Senate over whether to extend funding for the program, with some lawmakers arguing that the fuel economy requirements for the program are not strict enough. The Senate and House have now approved an additional $2 billion for the program.

Compact cars are the order of the day

Under the wildly popular “Clunkers” program — known officially as the Car Allowance Rebate System or CARS — consumers who trade in old gas guzzlers receive between $3,500 and $4,500 toward the purchase of more fuel-efficient, often smaller cars. The trade-in vehicle must have a combined city and highway fuel economy rating of 18 miles per gallon or less.

Critics had feared that car shoppers would use the program mostly to buy trucks, but according to Secretary of Transportation Ray LaHood, 83% of the vehicles traded in were trucks and SUVs and 60% of the vehicles purchased were passenger cars.

The average fuel economy of new vehicles purchased under the plan is 25.4 mpg and the average fuel economy increase from the old vehicle to the new is about 61%. In a CNN interview last week, Mike Jackson, chief executive of AutoNation, the country’s largest auto dealer chain said, “It’s crazy, but we’re seeing trucks — full-size pick-up trucks — traded in for compact cars.”

But we just can’t let the SUV go

Last month, many of the vehicles with the biggest reported year-over-year sales gains were small “crossovers” — a broad category of SUVs that includes small car-like crossover SUVs. The best-selling crossover in the Cash for Clunkers programs was the Ford Escape, number 6 on the government list, which gets much better fuel economy than large, truck-based vehicles.

The Corolla vs the Focus . . . and beyond

The Corolla and the Focus were dueling for first place under the program. Initially, the Focus emerged as No. 1 on a top-10 list of most cars sold, according to the Department of Transportation. But rankings released last week showed the Corolla had knocked the Ford car into second place.

The Toyota Corolla and Ford Focus have been top contenders in the Clunker Derby, but will their popularity outlive the new $2 billion fund earmarked for the program? No doubt the reasonable gas mileage and relatively low cost of the Corolla and the Focus helped catapult them to the top of the government list of vehicles sold under the program. The base models for both cars, before options packages, cost less than $16,000.

Thinking of trading in your clunker for cash? Apply for a car loan right here!

Cash For Clunkers has been extended (Photo: blogs.southtownstar.com)

Did you actually think that a Senate with a Democratic super majority would allow one of President Obama’s pet projects to die? Did you believe that the shot in the arm for automobile dealerships would be allowed to fade away? Did you think for one second that Americans would stop buying things they probably can’t afford?

Of course not. And that’s why Cash For Clunkers has been extended, to the tune of $2 billion taxpayer dollars. That will mean more payday loans with no faxing and short term loans for down payments, so it helps Personal Money Store, too.

Stimulate the economy, Mr. Obama!

Deb Price reports for The Detroit News that the Senate voted 60-37 and President Obama signed the bill this morning to turn the taxation switch and slam $2 billion more through the Cash For Clunkers program. By current estimate, this should keep the program going through at least Labor Day and fund about another 500,000 vehicle trade-ins. However, this will be the last time, say supporters of the measure. We’ll see about that last one.

“Now, more American consumers will have the chance to purchase newer, more fuel efficient cars and the American economy will continue to get a much-needed boost,” said the president. “Businesses across the country — from small auto dealerships and suppliers to large auto manufacturers — are putting people back to work as a result of this program.”

Breaking down the vote

In total, 51 Democrats, two independents and seven Republicans voted to extend Cash For Clunkers. On the opposite side of the measure, 33 Republicans and four Democrats said no. Two of the Democrats who helped drive the bill toward passing were Sens. Debbie Stabenow and Carl Levin. They’re both from Michigan, which should surprise nobody, considering that Detroit has been the heart of the American auto industry almost since its inception.

“This will be a great weekend to go out and buy an automobile,” said Stabenow. “I would hope it’s an American-made automobile; in fact I would hope it’s a Michigan-made automobile.”

Dealers love it

There were six amendments on the table that could have put Cash For Clunkers in deep freeze until the House returned in a month to vote, but none of the amendments made their way off the Senate floor. However, there are still prominent senators who think the whole thing is a bad idea, like John McCain. He thinks it’s “an unfair giveaway of taxpayer dollars.”

Automakers are very happy that the majority of the Senate don’t share his opinion.

“Cash for clunkers is a resounding success,” said National Automobile Dealers Association Chairman John McEleney. General Motors Co. Sales VP Mark LaNeve said “Our customers and dealers appreciate Congress’ help in keeping the program’s momentum going and providing the stimulus to put more clean, fuel efficient vehicles on the road.”

But will $2 billion last until Labor Day?

Perhaps it is a more accurate prediction of the amount of money Cash For Clunkers will need than the initial $1 billion projection that was supposed to last all the way to November 1. We certainly know that the program has been popular. But if popularity continues to surge – and if the recession begins to let up and the economy improves – there is a possibility that Cash For Clunkers won’t even make it until Labor Day. However, if people who can afford to make car payments are using the program, then it doesn’t matter so much when the program ends, but that it was used as intended. The economy will be stimulated.

The demand has been tough for dealers to meet

Meeting the demand of consumers who want their Cash For Clunkers discount has been a challenge for participating dealers nationwide. “It’s unbelievable. I’ve been buying as much as I can,” said Alan Helfman, who owns three Houston, Texas dealerships. “We are having trouble getting the models that are big sellers.”

In some cases, the automakers are considering an increase in production. Ford hasn’t decided yet, and GM may be on the verge. Tom Stephens, Vice Chairman of Product Development at GM, confirmed as much to Price.

Consumers are loving the Ford Focus

Fuel efficiency is on people’s minds these days, and it’s no surprise. Gasoline remains expensive, and people are thinking about fueling costs over the life of their new vehicles. This fuel efficiency, coupled with good reviews, may be what has made the Ford Focus one of the most popular vehicles asked for in the Cash For Clunkers program.

Don't do this to your car. Take care of it so dealers can benefit! (Photo: huffingtonpost.com)

Saturn dealer Dan Jonuska told Price that the Ford dealer down the street from his Saturn store have run out of the Focus. He believes this has turned their attention toward his lot for a look at what Saturn’s offering. Currently there are around 75 vehicles on his lot, and he projects he’ll sell 30-40 of those in August alone. In July, he moved 20 cars.

“We may not be first on the list, but if somebody wants to take advantage of the program, we have plenty of cars to sell,” he said.

Some dealers are going above and beyond

Many of the vehicles being traded in are simply to nice to junk as Cash For Clunkers mandates. That’s why dealers like Dave Knittel of Charlotte Lincoln Mercury are buying them as trade-ins. They’re even paying more than the $4,500 max that Cash For Clunkers permits. However, if the cars traded in can benefit the dealers’ business, why shouldn’t they do something like this?

“We really got to look at some nice vehicles,” he said. “All these people bought cars; we just didn’t ‘clunk’ them.”

Do you need a loan to take advantage of Cash For Clunkers?

Down payments are down payments. If you need the help of an auto loan, you can apply for one right here, right now.

Production is on the rise

If you need easy loans just to make it from paycheck to paycheck, and even then you could still use some extra cash, take heart. Recently there have been hopeful signs that the current recession is coming to an end.

At the end of July, the government reported that the real gross domestic product (GDP) fell at an annual rate of only 1% in the second quarter. Manufacturing activity rose to its highest level in the last year. Car sales jumped 15% and manufacturers are ramping up production. Based on the data now available for July, experts are predicting that the GDP will increase by as much as 3% in the second quarter.

Home sales are on the rise

Another encouraging trend is that existing home sales are on the rise. Between April and May, the S&P/Case-Shiller 20-city index of house prices fell just 0.2%, the smallest decline in the past two years. Stabilizing house prices are expected to reduce mortgage-loan defaults, shore up bank balance-sheets and improve the flow of credit.

Oddly, unemployment is also on the rise

Employment, however, is the single most important economic benchmark, and the outlook on that front remains grim. Unemployment rates are still on the rise, which is surprising given that economists generally predict that an increase in the GDP will be accompanied by a decrease in the unemployment rate.

The accuracy of this rule of economics, called Okun’s law, has been disputed, however; and according to Michael Feroli, an economist at JPMorgan Chase, Okun’s law would have predicted a national unemployment rate of only 8.6% during the second quarter of this year, whereas the actual rate averaged 9.3%.

Many factors influence the rising unemployment rate

Several factors may be at work in the discrepancy between the improving GDP and the worsening unemployment rate. Last week, the government revised earlier data to show that the GDP has declined a cumulative 3.7% (rather than 2.5%) since the end of 2007, tying with 1957-58 as the deepest recession since the Great Depression.

Also, expanded unemployment-insurance benefits are encouraging some workers to keep looking for jobs rather than drop out of the workforce altogether, which according to the government, could add as much as a half percentage point to the unemployment rate. Similarly, dissipation of wealth is driving people to look for employment rather than retire or stay at home with the children.

Another factor may be that employers have been quick to slash payrolls. Businesses are budgeting more conservatively because of the credit crunch, and many are pessimistic about an eventual economic recovery.

Whatever the explanation, productivity is rising and so is unemployment. According to a recent article in The Economist, Robert Hall of Stanford University, head of the academic committee that identifies and assigns time frames to recessions, says Okun devised his law in an era when productivity usually fell during recessions: “When productivity rises, the law fails.” Okun’s law, he says, is “obsolete.”

The rise in production may be a false reading

Employers are not likely to do much hiring until it seems reasonably certain that the new growth in production will continue. And some economists are doubtful that what we are seeing is real growth. These experts attribute the recent increase in production to the replenishment of inventory after an extended period of filling new orders from existing inventory in idle factories. They point out that inventory replenishment gives production a temporary boost without a corresponding increase in consumer demand.

The federal cash-for-clunkers program may also have given production an artificial boost. Recent car sales have been strong, in large part because of the program, which offers subsidies of as much as $4,500 to people trading in older, higher-emissions vehicles for newer, more fuel-efficient cars. But the $1 billion set aside for the program, which was supposed to run for several months, was depleted within the first week. The House of Representatives has now voted to spend an additional $2 billion and the Senate is expected to do likewise. But cars bought now will mean fewer cars bought later.

Numbers have a way of changing

And one more qualification: Government figures are notoriously subject to revision. Even the Great Depression is getting worse. According to the latest revisions, the GDP fell 26.7% (rather than 26.6%) between 1929 and 1933. In another 50 or 60 years, or as soon as next week – who can say? — today’s fresh new growth in production may never have happened.

What!? You could afford your own stimulus the whole time? (Photo: blog.puppetgov.com)

Will $2 billion in Cash For Clunkers money be approved by the Senate? Will the public’s insatiable appetite to recycle their tax dollars on vehicles many of them can’t afford ever be quenched? Will Cash For Clunkers get in the way of the Obama health care plan? These questions and more will be answered in the upcoming weeks. However, consumer greed being what it is, certain automotive dealerships are participating in a program called the Automotive Stimulus Plan. Apparently, they have the money just sitting around to be able to offer consumers the same discounts the taxpayers had to pay for before.

Say WHUUH?

Yes. Consumers come in with their short term loans and cash advances for down payments, and the dealers put up their own money for the discounts. Joshua Miller reports for FOXNews.com that some of America’s largest dealerships have collaborated on this private stimulus package. On trade-in, car buyers will get anywhere from $500 to $4,500 in incentives. That’s on top of the federal program, if it continues to exist.

So why is it that taxpayers would have to put up $2 billion more if the dealers can take care of this themselves? That’s what outraged senators like Jim DeMint want to know. Could the dealers have done something like this all along? Did the overwhelming response to Cash For Clunkers fill up their coffers, enabling them to be so generous?

The Automotive Stimulus Plan is rolling now

Unlike Cash For Clunkers, dealers participating in the Automotive Stimulus Plan are accepting all vehicles older than 2007 as trade-ins, and the money granted can be used on either new or used vehicles. This plan to “fill gaps” in the federal program, says Brian Benstock of Paragon Auto Group in New York City, should greatly expand the market. And why not? There are plenty of perfectly good vehicles that are 10 to 15 years old.

“You left out nearly half of the potential market,” Benstock told FOXNews.com. “We wanted to come up with a program in that no car would be left behind.”

Oh, bad terminology to borrow, Brian

At least the Automotive Stimulus Plan addresses what was perhaps the major flaw with Cash For Clunkers: people can trade their older car in for a used vehicle. The government’s program doesn’t allow that, which effectively prices many people out of the market for a vehicle. Plus, the MPG requirements of the Automotive Stimulus Plan are lower than Cash For Clunkers. The trade-ins only need to be two MPG less efficient than the vehicle the consumer wants. However, that could be an environmental drawback.

Stimulus of the package, did you say? (Photo: susty.com)

“The MPG requirements are lower because our primary goal is to help consumers that don’t qualify for the government’s program and to stimulate the economy through improved sales, jobs and spending,” Scott Grunwell of Courtesy Chevrolet wrote in a press release.

The private sector: helping taxpayers without taxpayer money?

“This is exactly what the private sector does better than the government, which is to establish a program that benefits everyone and doesn’t cost the taxpayers a dime,” said Tom Schatz of Citizens Against Government Waste to FOXNews.com.

As it stands, many believe the $2 billion in additional Cash For Clunkers money will be approved by the Senate. Thus, the taxpayer dollars will continue to flow. Regardless of whether the government program makes it back, the Automotive Stimulus Plan will be effective until November 1, 2009.

Title

The Automotive Stimulus Plan isn’t an environmental package; it’s designed entirely for economic aid. Obama’s plan is trying to kill two birds with one stone, and this may have limited its scope unnecessarily. As Benstock puts it, “This is the private sector taking over. We’re going to take the baton from the federal government and run with it.”

If you’re looking to buy a car but are in need of an auto loan, apply here!

(Photo: wgba.images.worldnow.com)

If you were worried like we were that Cash For Clunkers was suspended due to lack of funds, worry not. It’s halfway to being extended, thanks to a House vote that approved $2 billion more dollars for the program. Now the program might last… a couple more weeks!

Because people are all over this deal

After that, you may need payday loans with no faxing or other short term loans to make up the difference the $3,500 or $4,500 Cash For Clunkers would have brought you with an approved trade-in. But for now, it appears that Cash For Clunkers may be extended. So long as your car’s not on the Cash For Clunkers list and meets the general qualifications, you can apply for the trade-in credit.

But will the Senate agree?

Aaron Smith reports for CNN that the House voted 316-109 to divert $2 billion from a U.S. Department of Energy program loan guarantee program. What will Secretary of Energy Steven Chu think of this? Furthermore, will the Senate be able to come to a consensus quickly? People want those cars they can’t really afford, you know…

Considering the overwhelming response to the Cash For Clunkers program (and tremendous activity on the less-than-able Cash For Clunkers Website), it’s no shock that the government has so far responded with urgency.

Obama is happy with the vote

“I’m pleased about the progress made in the House today about the cash for clunkers program,” said President Obama just before the approving vote. He has presented the Cash For Clunkers program as a stirring success: “I’m happy to report that it has already succeeded beyond our expectations. It’s working so well that there are legitimate concerns that the original funds might already be exhausted.”

But for your information, this wouldn’t have been a problem if the original $4 billion proposal for Cash For Clunkers had been instituted. But whoever said government was good at getting things right the first time?

Is this thing right?

Despite the obvious demand for Cash For Clunkers exceeding the supply of money, the CARS.gov Web site still showed that $780 was available for the program as of the morning that talk of suspending the program began. Again, getting things right the first time is rare. Yet I’m surprised that the government did not anticipate how many people would jump at this shiny new automobile program that’s sure to send many consumers closer to bankruptcy.

At least dealers are remaining cautious. More and more of them are requiring people to sign statements that they’ll return their new cars if government funding dries up. Which it still may do if the Senate cannot agree on the $2 billion extension.

Does my car qualify for Cash For Clunkers?

Think first... can you afford a new car, even with Cash For Clunkers? (Photo: westcoastsuccesswordpress.com)

Everyone wants to know. So you should know that vehicles that have been bought after July 1, 2009 are eligible for refund vouchers of either $3,500 or $4,500, depending upon how much of a mpg improvement the consumer can make with a new vehicle. If your car gets 18 mpg (combined highway and city) or less and is younger than 25 years old (and does not appear on the list I mentioned in the second paragraph above… CLICK HERE), it may just be eligible for Cash For Clunkers. Follow the link for more details.

The overall goal of the Cash For Clunkers program is to spark sales in the sagging auto industry while getting more fuel-efficient, greener vehicles on the road, thus saving consumers money on gas and helping the environment. It comes at the perfect time for America’s domestic automobile industry, as the credit crunch of the recession and massive bailouts have damaged confidence in its viability. CNN cites sales figures for June 2009, with fell to 9.7 million. That, according to CNN, is well below the pace of years past.

If you need your own personal short term bailout, to the tune of short term loans and payday loans with no faxing, apply here now!

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No more CARS? (Photo: unclesamsauntie.com)

America needs strong, decisive action from its government that will restore consumer faith in the economy. One of the vehicles President Obama had planned to use to help those of us who are hamstrung by the high cost of gasoline was the Cash For Clunkers program, also known as CARS (Car Allowance Rebate System). With it, people would be able to trade in their older gas guzzlers for new, more fuel-efficient vehicles. It would save consumers money and help the environment.

But after about a week, it appears that Cash For Clunkers will be suspended. This is not inspiring news, Mr. Obama. May I please be allowed to have my cash advances and payday loans now? I’ll need that money to make a down payment on a car Cash For Clunkers was supposed to help me afford!

Cash for Clunkers suspended?

Elisabeth Leamy and Mike Callahan report for ABC News that Congress is currently scurrying about like nervous field mice, looking for a way to funnel more money into Cash For Clunkers, which has proven to be more popular than the government had anticipated. The $1 billion set aside for CARS may not be enough.

Really? You didn’t think people would like the program? You didn’t think that people who truly afford these new high mpg vehicles would still overextend themselves with fat monthly payments? It’s what Americans do.

Still running… on empty

White House spokesman Robert Gibbs says Cash For Clunkers isn’t suspended, but “is up and continuing to run.” But cash advances must flow into the program soon, as Congress begins their recess… today!

The original plan for Cash For Clunkers was for it to continue through November 1, 2009 or until the money was gone. However, the government’s estimate was that each participating dealer who be able to complete up to 12 CARS transactions. Yet that estimate has proven to be ridiculously low, as some dealers processed as many as 250 Cash For Clunkers deals within the first few days of the program. That’s more than 20 times above what the government was expecting. Now dealers are rushing to push their apps through before Cash For Clunkers is suspended.

The Department of Transportation says “scrap it”

In fact, they were on the verge of pulling the plug. Cash For Clunkers would’ve been suspended, but the White House stepped in at the last moment to buy some time.

“We are working to assess the situation facing what is obviously an incredibly popular program,” Gibbs said. “Auto dealers and consumers should have confidence that all valid cars transactions that have taken place to date will be honored.”

Yet the CARS Web site – www.cars.gov – showed $779 million remaining. Sounds like creative accounting to me. But the Web site is still running and displays no news about the program being suspended as of this writing. Dealers are still running their Cash For Clunkers commercials, too.

Dealers on the hook

Oh, did I mention the Web portal dealers have to use has been crashing almost constantly? So there’s a backlog of at least 25,000 transactions that dealers have made but the government has not yet approved. What will happen if the government shuts this thing down? Car dealers are in enough of a mess as it is.

“It’s up to the dealership now to get it’s money back, and that’s where the fear lies,” said one dealership owner to ABC News. “Customers are on the road but now we’re on the hook for the rebate.”

In light of this danger, some dealers are requiring that customers sign an agreement where they’ll return their new cars if government funding disappears. There are already plenty of cars that the EPA disqualified at the last second. Happy campers, get ready to pitch your fits!

WWCD (What Will Congress Do?)

Uncle Sam needs cash advances to keep CARS running! (Photo: vi.sualize.us)

Some senators have argued that while it may be possible to procure the cash to keep Cash For Clunkers going, there needs to be tougher standards put into place as to what vehicles will be eligible. In a joint statement, Sens. Dianne Feinstein of California (Dem.) and Susan Collins of Main (Rep.) said the following:

We will insist than any extension of the program requires that the minimum fuel economy improvement for newly purchased vehicles be at least two miles per gallon higher than it is under the enacted clunkers program. It is also important to include lower-income consumers who are disadvantaged under the current program. So, we would also include a voucher for the purchase of fuel-efficient used vehicles.

Cash For Clunkers guidelines (for now)

1. If you own a car from 1984 or later that gets 18 combined highway and city miles per gallon or less, you may qualify for the Cash For Clunkers – if it’s not suspended!
2. If it starts and has been registered and insured within the past year, you may qualify for the Cash For Clunkers – if it’s not suspended!
3. If the new vehicles gets four more miles per gallon than your clunker, you get $3,500 from the government – if Cash For Clunkers isn’t suspended!
4. If the new vehicles gets 10 more miles per gallon than your clunker, you get $4,500 from the government – if Cash For Clunkers isn’t suspended!
5. An SUV, minivan or small pickup only needs an mpg bump of two to five – if Cash For Clunkers isn’t suspended!
6. The new vehicle just cost less than $45,000 – unless Cash For Clunkers is suspended!

I believe I’d still need cash advances or payday loans for the down payment. If I were buying, I’d get those loans right here. Give it a try, won’t you?

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Does the math for the "Cash for Clunkers" stimulus program actually add up? (Photos: Cargurus.com)

In principle, it sounds great. People have the opportunity to trade in their older, less fuel-efficient cars for vouchers of up to $4,500. These vouchers are usable on new vehicles that are more fuel efficient than the “clunkers” being traded in. President Obama’s point here is at least three-fold: first of all, putting more fuel-efficient vehicles on the roads to lessen the constant need to refill the tank; second, getting newer vehicles with higher emissions standards out there will help the environment; finally, it will help more people afford better vehicles.

However, there are serious doubts as to whether the Cash for Clunkers stimulus will do enough for enough people. For many, they’d be better off looking into a payday loan or cash advance if they help with a down payment.

What are the qualifications?

Don Fenley reports for TimesNews.net that while the Cash for Clunkers stimulus could be what you’re looking for, it pays to do your homework first. That $1 billion program Congress and the president have passed on to us sounds great, but as Kiplinger.com notes, “the math may not match some of the sales pitches and public expectations vs. what qualifies.”

OK, so what does qualify for the Cash for Clunkers stimulus program? Here you go, in case you’ve been wondering. In order to be eligible for a rebate for your vehicle, the car you’re trading in must be of the year 1984 or later. I know, there are plenty of cars older than that out there. I suppose the president had to draw the line somewhere. In addition to the year, the vehicle must be registered and have been in use for at least one year. To ensure that what you’re trading in is indeed a clunker, the miles per gallon for your trade-in hunk of metal must be 18 mpg or less for combined city and highway driving. This is known as combined mpg.

As long as the new vehicle you want costs less than $45,000 and gets at least 22 mpg, your voucher could be worth up to $3,500. But if the new car improves the mpg you were getting from the old car by 10 mpg or more, you hit the jackpot! That’s a $4,500 voucher, and it’s a bit more difficult to come by, as you might expect.

Is it enough?

Please make sure that before you attempt to trade in your old rust-bucket, the vehicle in question is in fact drivable. If it isn’t, the Cash for Clunkers stimulus program isn’t what you need. Econo Wrecking or something similar would be the party to call… or Ghostbusters. Luckily, “drivable” doesn’t necessarily mean that the vehicle has to be in perfect running condition. For more info on Cash for Clunkers stimulus qualification, CLICK HERE.

Does your clunker qualify for the program? Great! But understand that if you’re using this government program, you have to trade it in for a new car that qualifies for the program. New cars are expensive. I don’t know about you, but for me, chopping $4,500 off the cost of a new car certainly helps, but it doesn’t make the price much more accessible. There are plenty of people out there during this recession who could use a new car to get around, but don’t have the money to do it, Cash for Clunkers stimulus or not.

More sources for info

Hey, it's drivable! (Photo: Zoomilife.com)

Fenley recommends the following National Public Radio roundup. Listen to the audio and enjoy some of the outlandish sales pitches that have stemmed from the Cash for Clunkers stimulus program. Plus, check out what the Better Business Bureau has to say about some of the Cash for Clunker stimulus scams that are out there. Cars.gov/dealersupport is also worth seeing.

Oh, and if you need quick cash for a down payment, use a payday loan or cash advance. You won’t be scammed if you apply here with us! In fact, what you will find is that the experience of applying for a payday loan takes much less time and gives you much less hassle than buying a car would any day.

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Make that rusted hulk worth something

A little while back, we talked about President Obama’s plan for the “Cash For Clunkers” program. It appeared to be a promising plan to spur new car sales by enabling car dealerships to take in older cars at better trade value. Better economically, better environmentally in that it promotes getting rid of old, non-green vehicles. A cash advance for and credit repair with Mother Nature, so to speak.

Now Cash For Clunkers is more than an early-stage plan. ABC News’ Jake Tapper and Sunlen Miller report that President Obama held a private meeting with Democratic members of the House Energy and Commerce Committee. While working on the ins and out of “cap and trade” environmental legislation, key progress was made on the vehicle trade-in legislation.

Rust buckets for vouchers

Under the newly modified agreement, consumers can trade in any vehicle that gets 18 miles per gallon or less. They’ll receive a voucher for a new, more fuel-efficient car. The amount of the voucher will range from $3,500 to $4,500, depending upon the new vehicle’s fuel efficiency.

“Cash for Clunkers” legislation will likely be folded into a larger Climate Change bill, which sources say is on schedule to pass the House in 2009. The carbon emissions part of the proposal will put a cap on the amount of emissions that will be reduced. Within that cap we will be a market-based system that will generate innovative ways to break America’s carbon-based fuel dependency.

How green is green and other issues

Senator Waxman from California had this to say about meeting some of the key challenges before the Climate Change bill committee:

If we can reach agreement with the coal sector, with the steel, with the auto sector, with the refining sector on our committee which is very representative of the Congress on the whole, then we believe that will be a template for passage in the Senate as well.

Then there are decisions to be made about just how green a car needs to be to receive the credit through the Cash For Clunkers program. “We had to decide how green these cars need to be to get that credit,” Rep. Jay Inslee told reporters.

But the end result should be a win-win. “It’s a good agreement,” agreed former committee chairman Rep. John Dingell. Dingell has been known as a protector of the United States automobile industry, so his endorsement could mean that the last stumbling blocks toward passage will be few.

“It means auto sales, it means fuel efficiency and it means progress.”

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Squeeze gold from that rust bucket

Cars.com’s “Kicking Tires” blog reports that President Obama has urged the automobile industry to adopt an incentive program called “Cash For Clunkers.” In order to attract more new car buyers, automobile manufacturers would offer greater trade-in value for older, less fuel-efficient vehicles.

Bills introduced in the Senate in January and House in March are in need of funding, according to Obama. They would be the engines to provide prospective new car buyers with vouchers worth up to $7,500. The theory is that what the government will pay is more than what can be obtained via normal trade-in – a real cash advance for those of us who are sitting on a less than desirable old car.  Not only would this voucher be good toward the purchase of a new, more fuel-efficient vehicle, but it could also be applied to vouchers that can be used to access public transportation.

Going green

Republican Senator Susan Collins of Maine is a major supporter of this double-fisted package of legislation. She says it “would help reduce dependence on foreign oil.” It would operate for four years and, in a coup for green living and the environment, is projected to remove as many as a million vehicles from the roadways each year. To encourage fuel efficiency, new car buyers who want to use the voucher program would have to purchase a vehicle that exceeds federal guidelines by 25 percent and is 2004 or newer.

Cars.com is unsure as to the exact numbers regulators would be using to determine fuel efficiency, as we’re not sure which numbers regulators would use to determine fuel efficiency, because Corporate Average Fuel Economy (CAFE) figures are generally still not published on window stickers.

Big auto wants a boost in new car sales

To sort through the confusion, multiple sources feel that what the Obama administration will do is release a list of new (or newer) vehicles that will be eligible under the Cash For Clunkers voucher program. Unfortunately, car makers would like to see such a program apply only to purchasing new vehicles – since it helps their bottom line most – but the interest in used cars isn’t going away. At least it helps them clear inventory…

President Obama said Cash For Clunkers “would be retroactive to today.” What does this mean? Cars.com isn’t sure, since there is currently no voucher plan in effect. Their guess is that any car purchased from this day onward would count. Apparently, you could then take your old car in for a voucher after the fact? But then what would that apply to if you’ve already purchased a new car? Stay tuned…

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